NOTE 7 - RELATED PARTY TRANSACTIONS

During the year ended December 31, 2017, Sanford Lang, the Company's former Chairman and CEO, advanced the Company $289,821 to pay for general operating expenses. The advance requires a monthly interest payment of $2,545 and due on demand.

As of March 31, 2021, the Company owed TSG $72,843 for expenses paid by TSG on behalf of the Company for expenses to launch licensed brands. Once royalties exceed $250,000 in the aggregate, and the Company has an adequate cash reserve, TSG may deduct the incurred expenses from the subsequent royalty payments until TSG is paid in full. In addition, the Company owes TSG and its subsidiaries an additional $83,419 for expenses paid on behalf of the Company or funds advanced to the Company to pay for other operating expenses.  TSG is owned by Ross Sklar, CEO.

As of March 31, 2021, the Company owes two of its board members $269 and $637, respectively, for cash advances to the Company and accrued compensation of $14,350 and $34,800, respectively.

On January 24, 2020, the Company executed a promissory note for $100,000 with Ross Sklar, CEO. The note bears interest at 4% per annum, compounded monthly, is unsecured and matures in two years. As of March 31, 2021, there is $209 of accrued interest due on this note.

During the three months ended March 31, 2021, the Company incurred $104,940 of marketing expense from The Woo. David Dryer, the EVP of Marketing is a Managing Director at The Woo.

During the three months ended March 31, 2021 and 2020, the Company recognized revenue of $132,514 and $55,674, respectively.  There is a $50,729 accrued receivable from related companies as of March 31, 2021.  All revenue received is from related parties.